Charts suggest natural gas price hike is not over Jim Kramer

According to CNBC’s Jim Kramer on Tuesday, technical analysis shows that the continued rise in natural gas prices is associated with a short-term decline in commodities and that relief may be on the way – not immediately.

According to Carner Garner’s translation, the charts suggest that natural gas may explode for a while, but she believes that in the end, it is a kind of temporary short-circuit. “Mad Money,” said the host.

“Sooner or later, she will bet, and prices will fall just as fast,” he said.

Unusually hot summers, and disruptions related to hurricanes such as hurricanes, have played a role in triggering the jump in natural gas prices, Kramer said. However, unless we get a very cold winter, Garner thinks the market is in demand with five dollars and Nazi gas.

Kramer points out a chart from Garner.

Technical Analysis from Carly Garner: CFTC Commitment to Natural Gas Future and Traders Information.

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“In the summer, you can see that these managers have a big net,” says Kramer. When prices fluctuated more than $ 4, they ran out of electricity – no one was selling – and when that happened, prices went down, which is exactly what happened.

Then, when investors decide to cover their short positions, natural gas prices have taken another step, forcing them to buy higher prices in the future and pushing up further pressure, Kramer said.

However, I do not think Garner is still “out of juice,” even though she thinks that the oppressor will eventually cool down. One key reason is that big estimates have not yet been neutral or refined based on recent CFTC data, Kramer said. According to Kremmer, this is what has led to the short-term worries.

“If that metaphor is true, Garner thinks that natural gas could go up to the 2009 or 2014 highs.

Natural gas futures rose $ 5,369 a million British gallons on Tuesday, the highest level since February 2014.

Technical analysis by Carly Garner, showing the long-term monthly chart of natural gas.

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Garner believes that natural gas does not appear to be higher than those 2009 or 2014 peaks because the United States has not seen anything higher than those levels since it exploded.

“If natural gas is damaged for less than $ 5, all this activity is over and Garner is expecting the same immediate damage,” said Kramer. “Finally, he predicts that the new supply will restore the balance of gas [at] About three dollars. “

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